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balandron [24]
3 years ago
10

Trek Cycles estimates the production of the model X-1 will incur an overhead of 150,000 machine hours and cost $30,000. It takes

6 machine hours per bicycle, a direct material cost of $5 per bicycle, and direct labor of $5 per bicycle. What is the cost of each X-1 bicycle produced
Business
1 answer:
Lelechka [254]3 years ago
3 0

Answer:

Unitary cost= $11.2

Explanation:

Giving the following information:

Estimated overhead= $30,000

Estimated machine-hours= 150,000

It takes 6 machine hours per bicycle, a direct material cost of $5 per bicycle, and direct labor of $5 per bicycle.

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 30,000/150,000

Predetermined manufacturing overhead rate= $0.2 per machine hour

Now, we can determine the unitary cost:

Unitary cost= 5 + 5 + 0.2*6= $11.2

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A reference group acts as a point of comparison and as a source of information for an individual.
Eva8 [605]

Answer:

True

Explanation:

A reference group is that group in which the comparison is made between the individual person or the group as the case may be.

In this group, the evaluation of individual taken place with respect to nature, behaviors, and characteristics so that they can know about them i.e performance, aims, etc

Thus, it is a mix of comparison, evaluation, and personal attributes

7 0
3 years ago
A production manager is evaluated based on the quantity of direct materials used in production. If the production line actually
Shalnov [3]

Answer:

1) True

2) D. Total fixed costs

Explanation:

1)  The manager's evaluation should be based on a flexible budget, so the statement is true.

The standard quantity of direct materials used should be based on actual production for a correct variance analysis.

2 ) Total fixed costs remains the same when comparing a flexible budget to a master budget.

Total fixed costs do not change in total within relevant range of production.

3 0
3 years ago
Elemental Pharma Inc. recently acquired Crick Pharmaceuticals Inc. It now sells its own productsalong with the products original
UNO [17]

Answer:

Option A. It will lower its costs through economies of scale.

Explanation:

The reason is that the sales of both of the companies will increase and cost can be controlled by integration of departments like finance department, distribution department, etc. This will decrease the cost of the product which will be because of higher sales and cost benefits due to integration of department and this higher sales increases the production which reduces the cost. So the option A is correct.

4 0
3 years ago
Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech made the following
kumpel [21]

Answer: LAND                                 3.227,680

              BUILDING                              806,920

              LAND IMPROVEM                 134,000

Explanation:

Land 4 0.8 $       3.227,680  

Building 1  0.2 $          806,920  

               5  $       4.034,600

Land Improvement    

Parking Lot $         88,000    

Lanscaping $         46,000    

Total  $        134,000

Computation Of Cost Of Land And Building  

Purchase Price  $       4.000,000  

Add:      

Title Insurance Cost  $             22,000  

Legal Fees                  $                8,000  

State Transfer Fees  $                4,600  

Demolition of old building $            310,000  

Land Clearing Expenses $             85,000  

Less: Salvage Material  $              -9,000  

Total Cost Of Land  $      4.420,600    

6 0
2 years ago
McConnell Corporation has bonds on the market with 18 years to maturity, a YTM of 9.8 percent, a par value of $1,000, and a curr
djyliett [7]

Answer:

13.70%

Explanation:

We use the PMT formula which is to be shown in the attachment

Given that,  

Present value = $1,326.50

Future value = $1,000

Rate of interest = 9.8%  ÷ 2 = 4.9%

NPER = 18 years × 2 = 36 years

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the PMT is

= $68.48  × 2

= $136.92

Now the coupon rate is

= $136.92 ÷ $1,000

= 13.70%

4 0
3 years ago
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